Business news from Ukraine

Business news from Ukraine

REAL WAGES IN UKRAINE 12.5% UP IN APRIL – STATISTICS

Real wages in Ukraine in April 2018 compared to April 2017 increased by 12.5%, compared to March 2018 by 0.4%, the State Statistics Service has said.
The average nominal wage of full-day workers in April 2018 compared to March 2018 increased by 1.2%, in annual terms rose by 27.3%, amounting to UAH 8,382, whereas in March it was UAH 8,382, February UAH 7,828, January some UAH 7,711.
According to the statistics, the largest increase in the average salary of full-day workers in April 2018 compared with April 2017 was observed in Zaporizhia (32.7%), Vinnytsia (31.9%), Dnipropetrovsk (31.7%), Kyiv (30.1%), Zakarpattia (29.3%), Poltava (29.1%), Zhytomyr (27.7%), Volyn and Lviv (27.3%), Cherkasy (27.1%), Chernivtsi (23.9%), Sumy (25.9%), Ternopil (26.1%), Kirovohrad and Rivne (25.1%) regions and Kyiv city (21.9%).
Wage growth in Donetsk and Luhansk regions (excluding part of the uncontrolled territories) was 36.1% and 33.7% respectively.
The highest level of wages in the past month was recorded in Kyiv at UAH 13,150, the lowest one in Ternopil region at UAH 6,394.
In April 2018 compared to the same month in 2017 wages grew in the sphere of state administration and defense, compulsory social insurance (by 44.1%), transport enterprises, warehousing, postal and courier activities (32.8%), agriculture, forestry and fishery (30.8%), industry (27.9%), information and telecommunications (27.9%), construction (27.3%), administrative and support services (27.2%), wholesale and retail trade, repair of motor vehicles and motorcycles (24.7%), real estate operations (22.5%), education and in the sphere of art, sports, entertainment and recreation (21.4%), financial and insurance activities (18.8%), health care and social assistance (17.4%), professional, scientific and technical activities (19.2%), and temporary accommodation and catering (19%).

SLOVIANSKI SHPALERY-KFTB WALLPAPER OUTPUT 2% UP IN JAN-APRIL

Public joint-stock company Slovianski Shpalery-KFTB (previously Koriukivka industrial paper factory in Chernihiv region), one of the CIS’ major wallpaper producers, in January-April 2018 produced 7.57 million conventional sheets of wallpaper, which was 2% up from a year ago, according to the UkrPapir association.
According to the association, wallpaper production in Ukraine in January-April 2018 grew by almost 4.4%, to 30.73 million conventional sheets of wallpaper. The factory’s share of total production was 24.6%.
In April 2018, wallpaper production in Ukraine totaled 7.94 million conventional sheets of wallpaper, which was 8.6% less than in April 2017 and 18.3% less than in March 2018.
Taking into account the production indicators, the volume of commodity products of the plant in January-April 2018 increased 28.4%, to UAH 373.32 million.
Slovianski Shpalery-KFTB produces several kinds of wallpaper, including washable, duplex, vinyl and acrylic wallpaper. It sells over 2,500 designs under the Slovianski Shpalery trademark.
Earlier around two-thirds of products made by the factory were supplied to Russia. The factory also shipped its products to the CIS and European countries.
In 2017 the factory reduced wallpaper output by 6.1% compared to 2016, to 26.79 million conventional units. In monetary terms, the volume of production remained almost at the level of 2016, amounting to UAH 1.066 billion.

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BORYSPIL AIRPORT ACCEPTS AND DISPATCHES ALL ADDITIONAL CHARTER FLIGHTS, 22% MORE BUSINESS JETS TO CHAMPIONS LEAGUE FINAL

Boryspil Airport (Kyiv region) on May 25-26 accepted and dispatched all 77 additional charter flights (100% of the plan) and 73 business flights, which is 21.6% more than the estimated number of flights agreed for transportation of fans to the holding of the UEFA Champions League final in Kyiv on May 26.
“Some 77 charter flights and 73 business flights were accepted on May 25-26. This number does not include regular flights, only those with fans,” airport spokeswoman Tetiana Yarosh said.
She also said that initially it was planned to accept only 60 business jets.
According to the expert, all these planes departed from Kyiv at 07:00 a.m. on Sunday, May 27, without incidents.
As reported, Boryspil airport planned to accept and dispatch 77 additional charter flights on May 25-27 in connection with the holding of the Champions League final match in Kyiv.
At the same time, Kyiv airport almost quintupled the number of accepted business jets in connection with the Champions League final match.

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FOREIGN INVESTORS INTERESTED IN PRIVATIZATION OF UKRAINIAN ENERGY COMPANIES

Foreign investors are actively interested in buying state-owned stakes in energy supply companies, while at the same time they note the need to introduce incentive tariff formation (RAB tariffs) for the reliable evaluation of privatized facilities, Brian Best, the manager of the investment banking department at Dragon Capital investment company, has stated.
“We see a certain interest in the energy sector and we have a mandate from international investors for participation in privatization of regional energy companies,” he said at the conference “Turning Tides: M&A in Ukraine” organized by AEQUO law firm in Kyiv.
At the same time, the expert noted the importance for investors of the availability of a transparent and understandable system for electricity tariffs formation.
“Without clarity in the structure of tariffs, it is difficult for investors to understand what the future cash flow will be and how to calculate the value of these assets. RAB tariffs are definitely a necessary condition for privatization,” the expert said.
Speaking about other state enterprises to be privatized, the expert noted the presence of a number of obstacles that limit investors’ interest in such assets, despite the fact that many of them seem very attractive.
“For example, Odesa Port-Side Chemical Plant and Sumykhimprom are burdened with significant artificial debts. And in order to conduct fair privatization, it is important to clear the balances of the enterprises from these liabilities,” he said.

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